When divorce becomes inevitable, there are usually many big decisions to confront. One can be how to divide up the family home. Considering that, in many cases, the family home is one of the most valuable assets that a family shares, determining how it is handled and who, if any of the spouses, can retain it can be difficult.
If it is possible for you to assume your home’s mortgage, then the big issue at hand is should you take this route or not?
No one enjoys working through a divorce, even when a couple has mutually decided to part ways and get along. Divorce is rarely easy to navigate. Still, when a relationship has come to an end and it is time to turn a new chapter in life, divorce may be inevitable.
If you are divorcing and need assistance figuring out the best approach to addressing major issues, including asset division, then the Maryland and D.C. marital asset division attorneys at The Law Offices of Thomas Stahl are here for you and prepared to protect your interests so you can move on with your life with the best possible divorce agreement.
Understanding an Assumable Mortgage
First, it is essential to understand an assumable mortgage. An assumable mortgage is a way to take over your joint loan from your spouse without having to get a brand-new mortgage. In this way, if you have a good rate in place, you can keep that, as well as all of the other benefits of the existing loan, including the current principal balance.
An assumable mortgage may be attractive when an existing loan has an assumable loan feature, and the existing mortgage terms are more favorable than what a buyer could get if they took out a brand-new home loan. The assumption fees and overall costs of an assumable mortgage tend to be much less than would be incurred if a refinance was done. So, all of these aspects can make an assumable loan preferred, that is, when an assumption feature exists, and an applicant has the credentials to be successful.
On the other hand, it is not a good idea to try to assume your mortgage if you do not know that your loan has an assumable loan feature. In fact, the majority of loans after 2008 are not assumable.
The reason it is a bad idea to apply for an assumable loan before knowing if you actually can is that interest rates fluctuate. If you apply and your lender does not allow for it, during the time you are waiting, you could risk the loss of grabbing a lower interest rate that could come about and may be better for your financial situation. Therefore, to determine if your loan is assumable, you can check the original promissory note.
Maryland And D.C. Family Law Attorneys
Leaving a family home behind can be emotional, and a desire to keep it is understandable. When it comes to retaining home ownership and other asset division aspects of divorce, an attorney can help you devise the right approach and plan.
Contact the seasoned and experienced Maryland and D.C. divorce lawyers at The Law Offices of Thomas Stahl for more information on divorce and asset division. You may schedule a consultation today or call us at (443) 331-2770. We have offices in Columbia, MD, and Washington, DC.
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